ICDC 2019 Practice Test (Questions)

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17. Liz works at a furniture store. A customer recently came into the store looking for a particular couch. When Liz informed the customer that the couch was out of stock, he started raising his voice and making rude comments to Liz. This is an example of a(n) __________ customer. A. suspicious B. leave-me-alone C. domineering D. insulting

17. D Insulting. Insulting customers can be very rude. Customers that are insulting often take out their frustrations with a particular product or company on an individual salesperson, even though the salesperson is not the reason for the customer's problem. Leave-me-alone customers are people who refuse to accept help from sales representatives, even when they are confused or need assistance. Domineering customers like to be in control. They often give orders to salespeople even if they don't know what they are talking about. Suspicious customers ask questions such as "Are you sure there are no bed bugs in this hotel?" and "I want to be certain I won't be charged for extra towels." The customer in this example is best described as insulting.

24. A company is concerned about conducting itself with integrity and respecting the rights of its employees and customers. Which pillar of social responsibility is this business focused on? A. Economic B. Legal C. Philanthropic D. Ethical

24. D Ethical. A business is responsible for conducting itself with integrity, for respecting the rights of others, and for playing fair. This is part of ethical responsibility, which is one of the four pillars of social responsibility. Legal, philanthropic, and economic responsibility are the other three pillars of social responsibility.

74. Which of the following situations can a company's employees avoid by using the same integrated business software application package: A. Need to proofread documents B. Data-entry errors C. Need to convert files D. Misaddressed email messages

74. C Need to convert files. An integrated business software application eliminates the need to convert files since all the software is interconnected. When a company uses separate software programs, files need to be converted before they can be used in other programs. File conversions can result in information and formatting loss. Most software applications have tools that help reduce data-entry errors and misaddressed email messages, but they do not eliminate all potential user errors. While built-in editing tools can help correct user errors, they do not entirely eliminate the need for proofreading.

78. A café owner has noticed many consumers prefer strongly caffeinated tea products. He decides to offer teas and lattes made with strongly caffeinated matcha green tea. The owner is responding to A. a trend. B. the business cycle. C. competition. D. a government regulation.

78. A A trend. The business owner's offering of matcha green tea drinks is a response to a consumer trend. There's no indication that the café owner is responding to competition, the business cycle, or a government regulation

84. Although projects are constrained by scope, time, and budget, managers must prioritize A. quality. B. saving money. C. communications. D. sales numbers.

84. A Quality. Scope, time, and budget are constraints on projects. They each affect the others and work together to ensure project quality. No matter what changes occur to the scope, time, and budget, quality must be the top priority. Saving money, communications, and sales numbers are all important, but they should not be prioritized over project quality.

93. Ryan recently witnessed his coworker Tabatha being reprimanded by their boss for failing to meet an important deadline. Based on this encounter, Ryan could infer that his boss expects his employees to A. maintain a positive attitude at work. B. represent the company positively. C. work well together in teams. D. demonstrate dependability.

93. D Demonstrate dependability. Employers value many things in employees, including dependability, trustworthiness, positivity, a strong work ethic, and the ability to work well with others. In this example, however, the situation best demonstrates that Ryan's employer wants dependability from employees— employees that consistently meet deadlines.

98. Smoother workflow, clearer lines of communication, and faster issue resolution are all benefits of A. operating as a limited liability partnership. B. implementing a chain of command. C. hiring mostly recent college graduates. D. executing a marketing campaign.

98. B Implementing a chain of command. Organizations that implement solid chains of command enjoy many benefits compared to organizations that lack them, including smoother workflow, clearer lines of communication, and faster issue resolution. These are not necessarily benefits of operating as a limited liability partnership, which is a hybrid form of business ownership that is generally used by business professionals for the purpose of protecting innocent partners from the malpractice of the other partners. These benefits are also not necessarily benefits of hiring recent college graduates or executing a marketing campaign.

10. Each day after history class, Marty lists the important historical events that he learned about according to the dates when they occurred. Marty is using the __________ method of organizing information. A. order of importance B. chronological order C. comparison and contrast D. geographical

10. B Chronological order. There are several methods of organizing information, including chronological order, order of importance, comparison and contrast, and geographical organization. Chronological order involves listing information in a sequence of dates or time frames, like Marty did in this example. Order of importance involves organizing data around the significance of the information. The comparison and contrast method involves organizing information according to its similarities and differences. Geographical organization involves organizing information according to the location it is associated with

1. Reynolds Uniform Supplier agreed to sell 500 customized polo shirts to a fast-food restaurant chain at a price of $10 each. After receiving the shirts, however, the fast-food restaurant was surprised to find that the order was missing 100 shirts—and that the supplier charged them $12 per shirt instead of $10. Reynolds Uniform Supplier most likely violated __________ law. A. sales B. contract C. property D. tax

1. B Contract. A contract is an agreement between two (or more) parties that can be legally enforced in a court of law. One example of a business contract is the agreement to buy or sell a certain product or service from another business. Reynolds Uniform Supplier most likely violated its business contract with the fast-food chain by not providing the correct number of shirts, as well as by charging more than the agreed-upon price. Sales law governs the transfer of ownership of property from one entity to another. Property law governs the various forms of ownership of property. Tax law deals with the regulatory rules associated with taxes.

100. If a company spends all of its financial resources to discover a new way to purify water, it could be classified as a __________ organization. A. risk-tolerant B. risk-adverse C. risk-seeking D. zero-risk

100. C Risk-seeking. A company that spends all of its financial resources to discover a new way to purify water is a risk-seeking organization because it is hoping to gain from the discovery while risking its financial health. Risk-adverse and risk-tolerant organizations do not seek new risks. A zero-risk approach to risk management involves eliminating all possible risks.

28. Which of the following statements regarding a nation's unemployment rate is true: A. When businesses create fewer products, they need more workers, and unemployment drops. B. Frictional (voluntary) unemployment will disappear once an economy reaches full employment. C. The unemployment rate is a predictive indicator; it predicts what will happen to an economy but does not reveal what happened in the past. D. The unemployment rate is a lagging indicator; it confirms what is already known about the economy but does not predict future trends.

28. D The unemployment rate is a lagging indicator; it confirms what is already known about the economy but does not predict future trends. For example, if the unemployment rate went up last month, it reinforces other gauges that show the economy has been doing poorly. It doesn't, however, mean that the economy will continue to worsen in the near future. Frictional (voluntary) unemployment will always exist in an economy, since this type of unemployment typically results from normal life circumstances. When businesses create fewer products, they need fewer workers—not more workers—and unemployment rises.

11. Which of the following formats is most appropriate when creating a persuasive piece of professional writing: A. Minutes B. Report C. Proposal D. Memo

11. C Proposal. Persuasive professional writing is intended to convince an audience to adopt a certain stance on an issue. The format of persuasive writing, therefore, should naturally be different than the format of other types of professional writing. Proposals, press releases, and sales emails are common formats for persuasive writing. Reports are generally used for informing an audience about something, rather than for persuading them. Minutes are recorded during meetings. Memos are brief, informative documents used to bring attention to an important issue quickly and effectively.

12. Which of the following situations demonstrates how digital communications expose businesses to risk: A. An employee uses his personal (nonwork) computer to play games. B. A company's email server is hacked, and sensitive data is leaked. C. A business welcomes the public into its building for a lecture series. D. A company regularly participates in international conferences.

12. B A company's email server is hacked, and sensitive data is leaked. Digital communications such as email, text messaging, and chat rooms can expose businesses to risks such as data breaches. Computers, networks, and servers are rarely 100% secure and are often hacked by cyber criminals. A company's email server being hacked is an example of a risk resulting from digital communication. Employees' use of their personal devices for entertainment would not expose a business to risks from digital communication, nor would welcoming the public into a company building or participating in international conferences.

13. Which of the following pieces of information would be most appropriate for posting on LinkedIn or another professional social networking site: A. Photos of your family from a recent vacation B. An award you received at work C. Concerns you have about your current job or career D. Updates on your personal marathon training

13. B An award you received at work. LinkedIn and other professional social networking sites are intended to be used for educational and networking purposes, not for posting personal information such as family photos or updates on personal projects. It would be unwise to post concerns about your job on any social networking site, professional or personal, since employers could potentially see your post.

14. A manager wants to inform her employees that there is free coffee in the common area. Which of the following communication channels would be most appropriate for her message: A. An in-person announcement B. A business memo C. A Skype call D. A formal letter

14. A An in-person announcement. For a message as casual as "free coffee," the most appropriate method of communication would be a simple in-person announcement. A memo, a Skype call, and a formal letter would all be inappropriate for this type of announcement. A memo is generally used to disseminate important information, not casual announcements. A Skype call would likely disrupt employees' work flow, and a letter would be too formal for this message.

15. Which of the following statements regarding staff meetings is true: A. It's best to avoid speaking up unless you have a brilliant idea. B. It's okay to work on other things during a meeting. C. You should contribute something to every meeting. D. Note-taking during meetings makes you seem over-enthusiastic.

15. C You should contribute something to every meeting. Staff meetings are times to exchange information, brainstorm as a group, and build rapport with colleagues. It's a good idea to contribute something to every meeting you attend, even if it's simply agreeing with what's been said. You don't need to have a brilliant idea to speak up. Contributing to meetings sends the signal that you are engaged in your work and want to help the group succeed. It is inappropriate to work on other things during a meeting. Instead, you should set aside all other tasks and focus your attention completely on the meeting. It's a good idea to take notes during meetings to help you remember what was discussed. Taking notes sends the message that you care about the meeting and are taking it seriously, not that you are over-enthusiastic

16. Stacy, a poodle owner, chose her dog's groomer based on the friendliness and attentiveness of the staff. Even though the prices are higher than other groomers, Stacy would never consider going somewhere else. This example demonstrates the importance of A. building and maintaining customer relationships. B. setting prices higher to create an image of luxury. C. outpricing the competition through sales and giveaways. D. earning new customers rather than focusing on current ones.

16. A Building and maintaining customer relationships. One of the best ways to differentiate a business from the competition is by offering excellent customer service. By building and maintaining strong customer relationships, businesses can retain current customers and turn them into loyal brand ambassadors. It is more expensive to acquire new customers than it is to retain current customers, so businesses should focus on satisfying the needs of their current customers before attempting to earn new customers. This example does not demonstrate the importance of setting high prices for brand image or outpricing the competition through sales and giveaways.

18. Smith's Candy Company specializes in small-batch chocolates. Which of the following is an example of a brand touchpoint for Smith's Candy Company: A. A coupon for a competing brand's chocolate bars B. The brand's slogan: "Candy for the people, by the people" C. The organizational culture of Smith's Candy Company D. A magazine advertisement for the brand's chocolate

18. D A magazine advertisement for the brand's chocolate. A touchpoint is any interaction between a business and a customer or potential customer. Examples of touchpoints include advertisements, publicity, word-of-mouth marketing, engagement with salespeople, interaction with the company's website, and the good itself. A brand slogan itself is not necessarily a touchpoint until a customer comes into contact with that slogan. Similarly, the organizational culture of the company is not a customer touchpoint either. A coupon for a competing brand's chocolate is not a touchpoint for Smith's Candy Company, but instead a touchpoint for the competitor.

19. There are several core principles for using customer information ethically. When a company makes it hard for customers to opt out of certain promotional emails, mobile alerts, and other messages, which core principle is it violating? A. Choice/Consent B. Access/Participation C. Integrity/Security D. Enforcement

19. A Choice/Consent. The choice/consent principle encourages businesses to give their customers certain options in how their information will be used. For instance, businesses often allow customers to opt in or out of receiving promotional emails, mobile alerts, messages from partnering businesses, etc. The access/participation principle states that customers should be able to view and verify their information with ease. The integrity/security principle refers to keeping customer information safe and private. Enforcement refers to regulations and laws designed to hold companies accountable to these principles

2. If you promise your boss that you will attend a professional development seminar, following through on that promise will A. help you become more organized. B. ensure you will never get fired. C. lead you to receive a promotion. D. build a strong, trusting relationship.

2. D Build a strong, trusting relationship. When you manage commitments well, you are living up to your obligations, which means you are being fair and respectful to others. This allows you to build strong, trusting relationships, as is the case with your boss in this example. Following through on a promise to your boss will not necessarily ensure you will never get fired or lead you to receive a promotion, although it might help you grow in your career. It is not necessarily related to becoming more organized.

20. Manufacturing equipment, machinery, transportation systems, and buildings are A. noneconomic goods. B. natural resources. C. capital goods. D. human resources.

20. C Capital goods. Capital goods include all of the manufactured or constructed items that are used to produce goods and services. This includes the buildings, equipment, and machinery used to produce goods and services, along with the transportation systems used to provide access to the products. Natural resources are items found in the environment that are used to produce goods and services. Trees, air, and land are all natural resources. People are our human resources. In economics, they are valued for the physical and mental work that they do to produce goods and services. Some examples of human resources are entrepreneurs, construction workers, bus drivers, and police officers.

21. Which of the following statements accurately describes the law of demand in regards to customer buying behavior: A. Consumers generally buy more at lower prices, and less at higher prices. B. Consumers generally buy less at lower prices, and more at higher prices. C. There is no relationship between customer buying behavior and prices. D. Consumers rarely buy products logically or according to rational thought.

21. A Consumers generally buy more at lower prices, and less at higher prices. The law of demand states that the quantity of a good or service that consumers will buy varies inversely with the price of the good or service. In other words, consumers will buy more of a certain product if it is inexpensive than if it is expensive

22. ABC Corporation recently held a series of executive meetings where company leaders discussed several "big-picture" questions about the business's future. These questions included "Is the company headed in the right direction?" and "Is the company likely to experience long-term success?" Which primary business activity were the company leaders a part of? A. Human resources management B. Financial analysis C. Strategic management D. Information management

22. C Strategic management. Strategic management is the process of planning, controlling, and organizing an organization or department. Strategic management helps a business determine how it can succeed and reach its goals over time. Holding a series of executive meetings to answer "big-picture" organizational questions is an example of strategic management, not financial analysis, human resources management, or information management. Financial analysis is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources. Human resources management is the process of planning, staffing, leading, and organizing employees. Information management is the process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data.

23. If a business doesn't want to pay to set up operations overseas, it might choose to expand through A. joining a strategic alliance. B. exporting to foreign countries. C. establishing a multinational firm. D. creating a wholly owned subsidiary.

23. B Exporting to foreign countries. If a business doesn't want to pay to set up operations overseas, it might choose to expand through exporting. With exporting, a business simply ships its products to other countries. Joining a strategic alliance, establishing a multinational firm, and creating a wholly owned subsidiary are all options that require the time, effort, and money of setting up overseas operations

25. Which of the following is an example of an operational business risk: A. Regulatory issues B. Natural disasters C. Property damage D. Human errors

25. D Human errors. Operational risks are the possible events and situations that can result from employee actions, core processes, and daily business activities. Examples of operational risks include human errors, production problems, leadership problems, labor relations, and insufficient information management. Natural disasters and property damage are examples of hazard risks. Hazard risks are potential events or situations that can cause injury or harm to people, property, or the environment. Regulatory issues fall under the category of strategic risks. Strategic risks are much broader than the other types of risk and generally concern the overall business environment.

26. Which of the following is used to set levels of government spending and taxation: A. Monetary policy B. Fiscal policy C. Price supports D. Subsidies

26. B Fiscal policy. Government intervenes in business through its fiscal policy. Fiscal policy is used to set levels of government spending and taxation. A government's monetary policy, on the other hand, determines the amount of money that will be in circulation and the level of interest rates. A price support is a direct form of government intervention in business. For example, food prices sometimes fall because of overproduction by farmers. When this happens, government price supports allow farmers to make enough money from selling their products to pay their costs. Businesses may also receive financial help from government in the form of subsidies. Subsidies are financial assistance such as grants or tax breaks.

27. Kelly runs a small home bakery. To help her fulfill more orders, she hired three part-time employees. The additional workers increased her output, so she hired another three workers. To her surprise, Kelly's output actually decreased once she added the last three workers. This example best demonstrates the A. harm of taking business risks. B. need for effective employee training. C. law of diminishing returns. D. danger of hiring employees.

27. C Law of diminishing returns. The law of diminishing returns is an economic concept that states that if one input increases while others are constant, at some point the increases in output will decline. In this example, Kelly added six new employees to her business without changing anything else. Kelly's business reached the point at which output could no longer increase unless the inputs also increased. This example demonstrates the law of diminishing returns, not the need for effective employee training, the harm of taking business risks, or the danger of hiring employees.

29. During which of the following business cycle phases does demand for goods and services start to fall: A. Peak B. Trough C. Contraction D. Expansion

29. C Contraction. When the demand for goods and services starts to fall and unemployment rises, the peak has passed. The business cycle has entered its third phase, known as contraction. This is considered to be a bad time for consumers and businesses. The trough phase of the business cycle, the low point of economic activity, comes after the contraction phase. The peak phase is when economic prosperity hits a high point. The expansion phase is the first phase of the business cycle and is a time of economic growth.

3. In most countries, cases begin their legal journeys in __________ court. A. trial B. supreme C. appellate D. intermediate

3. A Trial. Cases begin their legal journeys in trial court, where crimes are initially reviewed and examined in a trial by a judge (and often a jury of civilians). Once a case has been heard in trial court, the decision can be appealed to a higher court of law. Appellate or intermediate court refers to a court that hears cases after an initial trial. Finally, decisions from an appeals court can be appealed a final time to a supreme court. Decisions from a supreme or "last resort" court have final authority, meaning they cannot be appealed further

30. An American manufacturing company has always produced its products in the United States. But in recent years, increased competition from foreign manufacturers has forced the company to move some of its manufacturing operations overseas. The cost of labor is simply cheaper in other countries. This is an example of the effects of __________ on business. A. exchange of technology B. globalization C. knowledge transfer D. domestic operations

30. B Globalization. Globalization is the rapid and unimpeded flow of capital, labor, and ideas across national borders. One of the major impacts of globalization on business is increased competition. As a result of globalization, companies now operate in several different countries—and have access to more markets than ever before. This increases competition among businesses in the same industry. This example demonstrates the effects of globalization-related competition on business. The exchange of technology and the transfer of knowledge are both by-products of globalization, not effects of globalization. Domestic operations refers to business that takes place in a company's home country.

31. The coastal city of Los Angeles, California is home to one of the most important ports for global trade. Los Angeles's location relative to countries such as Japan, Korea, and China makes it a prime location for transpacific shipping and receiving. Los Angeles's port is an example of the impact of __________ on world trade. A. political factors B. natural resources C. geography D. economic development

31. C Geography. The geographical location of cities and ports is an important component of global trade. Los Angeles is an example of a city that is ideally located for trade because it can be easily accessed from the Pacific Ocean. Natural resources, political factors, and economic development also influence where the centers of global trade are located, but this example best demonstrates geography's impact on global trade.

32. Which of the following is a potential impact of bribery and other corrupt practices on business: A. Decreased crime B. Greater efficiency C. Gained resources D. Loss of customer trust

32. D Loss of customer trust. If news gets out that a company has been engaging in corrupt business practices, the company can suffer from the loss of customer and public trust. Customers generally do not support corruption in business and will refuse to buy from a business that engages in bribery or other fraudulent practices. Other potential results of corruption include decreased business efficiency, loss of resources, and an increase in black market crime and other types of organized fraud. Companies that engage in corrupt business activities generally do not enjoy greater efficiency or increased resources.

33. Sierra is an Asian-American woman who enjoys watching football. However, the commercials she sees on TV always seem to portray men as the only demographic that enjoys sports. The idea that only men watch football is an example of a(n) A. unconscious bias. B. prejudice. C. stereotype. D. discriminatory statement.

33. C Stereotype. Stereotypes are set images or assumptions about a person, group of people, or thing. Stereotypes are often widely recognized by a society as a whole. For example, the idea that only men enjoy watching sports is a stereotype. Prejudice is an opinion or judgment that is based on feeling or hearsay, rather than fact. Unconscious bias is bias that we are unaware of and unable to control. This type of bias happens automatically through the quick judgments we make. A discriminatory statement would involve discrimination, or unfair treatment of a person or group based on the person's or group's characteristics. This examp

34. Jenna just realized that she failed to do an important and difficult task that her boss had assigned to her. The task needs to be completed by tomorrow morning. What should Jenn do to show that she has initiative? A. Ask her teammates to help complete it B. Complete what she can before her workshift is over C. Ask her boss to extend the deadline D. Work late to complete it on time

34. D Work late to complete it on time. Working late shows that Jenna has initiative because she is willing to work hard to accomplish her assigned work. If Jenna leaves the work unfinished, asks for an extended deadline, or asks her teammates to help, she will show a lack of initiative by not accepting personal responsibility for completing her assignment on time.

35. Ben and Melissa were partners for a group project at school. After Melissa failed to complete her part of the project on time, Ben decided not to work with her again on the next project—even though Melissa wanted to work with Ben. Ben no longer trusts Melissa because she A. didn't take responsibility for her actions. B. shared confidential information with others. C. didn't follow through on her commitments. D. was disrespectful toward Ben.

35. C Didn't follow through on her commitments. Perhaps the most important thing you can do to build trust is to keep your promises. If you don't do what you say you'll do, it's difficult for others to count on you. In this example, Melissa didn't complete her part of the project on time. As a result, Ben no longer trusts her to be his partner for the next group project. It's also important to avoid sharing confidential information with others, to respect other people, and to take responsibility for your actions; however, this example best demonstrates the importance of following through on commitments.

36. Which of the following statements regarding legally binding contracts is true: A. A contract is legally binding even if one party does not accept an offer. B. Only one party has to be in agreement for the contract to be valid. C. Contracts are never required to be in writing to be legally binding. D. Something of value must be exchanged for something else of value.

36. D Something of value must be exchanged for something else of value. A legally binding contract requires two things: a clear agreement by all involved parties, and mutual promises to exchange things of value. A contract is not legally binding if any involved party is not in agreement with the terms of the contract. Under certain laws, contracts must be in writing to be legally valid; however, not all laws require written contracts. If one party does not accept an offer to exchange items of value, the contract is not legally binding.

37. Which of the following examples best illustrates someone practicing "not knowing": A. Louis doesn't look up unknown information on his phone right away. B. Sandy tries driving along the back roads instead of taking the highway. C. Pete makes a list of all of the things that he cannot control. D. Rosa practices deep breathing and other relaxation techniques.

37. A Louis doesn't look up unknown information on his phone right away. Tolerating ambiguity is all about being comfortable with not knowing what will happen or what the "correct" action is. If you can get comfortable with the unknown, however, you won't try to fill in the blanks with wrong or incomplete information. Louis is allowing himself to accept the unknown without quickly trying to figure out the answer. Sandy's drive along back roads instead of the highway is an example of stepping out of her comfort zone rather than practicing not knowing. Pete is doing a reality check rather than practicing not knowing. Finally, Rosa is practicing mindfulness rather than practicing not knowing.

38. Whenever Rosa starts to think negatively, she imagines a big red "STOP" sign and pushes the bad thoughts out of her head. Rosa is practicing A. gratitude journaling. B. pessimism. C. positive self-talk. D. thought stopping.

38. D Thought stopping. Thought stopping is a technique used to help maintain a positive attitude. It involves imagining a "STOP" sign whenever a negative thought enters the mind. In this example, Rosa is practicing thought stopping—not pessimism, positive self-talk, or gratitude journaling. Positive self-talk involves giving yourself encouragement and praise for personal successes. Gratitude journaling involves writing down what you're thankful for. Pessimistic people always look on the negative side of life. If Rosa was being pessimistic, she would allow her negative thoughts to continue

39. Rachel, a high school senior, works at a grocery store. When her boss schedules her to work on prom night, she explains to her boss that she already bought tickets to the dance and asks her to reschedule her for the next day. Her boss, however, won't budge—she says Rachel has to work on prom night or lose her job. Rachel's boss most likely lacks A. respect. B. empathy. C. rationality. D. logic.

39. B Empathy. Empathy is the ability to put yourself in another person's place or to see a situation from another person's point of view. Someone who is empathetic can relate to another person's feelings, thoughts, and experiences. In this example, Rachel's boss lacked empathy by forcing her to work on prom night. If she was more empathetic, she would have realized how miserable it would be for Rachel to miss out on prom and agreed to let Rachel work another day. Rachel's boss did not necessarily lack respect, rationality, or logic in this example. She simply acted without empathy.

4. Why do countries often impose customs duties on products moving into and out of their country? A. To prevent illegal drugs and other contraband from being transported across borders B. To encourage foreign trade by allowing goods to flow across borders with no regulation C. To discourage foreign trade by prohibiting goods from moving across borders D. To protect the country's economy and residents by controlling the flow of goods

4. D To protect the country's economy and residents by controlling the flow of goods. A customs duty is a tax or tariff imposed on goods when transported across international borders. The purpose of these duties is to protect each country's economy and residents by controlling the flow of goods. The purpose of customs duties is not to encourage foreign trade by allowing goods to flow across borders with no regulation. However, customs duties do not completely prohibit goods from moving across borders, either. The purpose of customs duties is not to regulate illegal drugs or contraband.

40. Which of the following individuals is exhibiting cultural sensitivity: A. Omar sees his Asian-American friend preparing an unfamiliar dish for lunch and says: "That looks really good. Could you tell me what's in it?" B. Karen tells her new colleague, an African-American woman, that "she doesn't see race." C. Wyatt notices that one of his classmates wears a hijab and says to his friends: "I don't care what religion other people practice." D. Liz loudly remarks: "It's not fair that some students get excuses to leave school early for religious holidays."

40. A Omar sees his Asian-American friend preparing an unfamiliar dish for lunch and says: "That looks really good. Could you tell me what's in it?" Some people think that exhibiting cultural sensitivity means ignoring or minimizing differences. They may say things like, "I don't see you as being female" or "I don't care which religion you choose to follow." While these people may have the best intentions, they are still missing the mark. Valuing diversity does not mean ignoring differences or minimizing other people's unique experiences; rather, it means openly acknowledging differences and believing that they are assets instead of problems. An example of exhibiting cultural sensitivity is showing interest in someone's culture or heritage, like Omar did by asking about his friend's lunch. All the other options provided demonstrate people being culturally insensitive.

41. Which of the following statements accurately describes the difference between collaboration and cooperation: A. Collaboration is primarily about going along with others; cooperation is about having other people go along with you. B. Collaboration is less of a challenge than cooperation; cooperation requires heavier involvement and contribution than collaboration. C. Collaboration involves helping other people meet their goals; cooperation involves setting goals and coming up with ideas together. D. Collaboration involves generating ideas with other people; cooperation involves accepting other peoples' ideas.

41. D Collaboration involves generating ideas with other people; cooperation involves accepting other peoples' ideas. Collaboration is an arrangement in which two or more parties contribute and share responsibilities to achieve success. While collaboration requires cooperation and teamwork, it is about much more than getting along with others or helping them with a task or project. Collaboration is generally more of a challenge than cooperation, since it requires more input and involvement. Collaboration involves generating ideas and working toward goals with other people, rather than helping others meet their own goals.

42. Which of the following individuals is using persuasion to convince his/her audience to go along with something: A. Eric threatens his younger brother with blackmail if he doesn't help Eric with the dinner dishes. B. Melody presents several statistics to her parents about a university she wants to attend in the hopes that they will allow her to go there. C. After yelling at his roommate Mark for forgetting to lock the door, Oscar demands that Mark buy a security system for the apartment. D. Tanya tells her friends that they cannot come to a big party she's throwing unless they help her complete a school project.

42. B Melody presents several statistics to her parents about a university she wants to attend in the hopes that they will allow her to go there. Persuasion is the ability to get people to see things your way, to do things your way, or to agree with you. When you persuade, you try to influence people to change their attitudes or behavior. Persuasion is not fighting, losing your temper, or threatening other people. Melody is the only individual presented here that is effectively using persuasion.

43. Employers should care about limiting employee stress because high stress in the workplace can contribute to A. lower health care costs. B. increased productivity. C. more absenteeism. D. less employee turnover.

43. C More absenteeism. Stress can lead to absenteeism and tardiness at work. When absent workers are the norm, employers have a hard time relying on employees, adhering to deadlines, and getting work done. Employers, therefore, should take steps to limit employee stress as much as they can. High stress in the workplace also leads to decreased productivity, increased health care costs, and higher employee turnover.

44. A manufacturing company formed a team of food scientists, chemical engineers, salespeople, and marketing managers to develop a new type of cereal. This group of people is most likely to be a A. standing committee. B. self-directed work team. C. cross-functional team. D. quality circle.

44. C Cross-functional team. A cross-functional team includes team members from different areas of specialization who work together to complete a task. For example, an automobile company might form a team that includes engineers, salespeople, managers, and marketing personnel when planning future business strategies. These teams include a wide variety of experiences and skillsets. A self-directed work team is one in which all individual members work together without the supervision of a leader. There is not enough information provided in this example to determine if this team is self-directed or not. A standing committee is one that exists and functions on a permanent basis, whereas a short-term or ad hoc committee is created for a particular or temporary reason. The team in this example is likely a shortterm committee, not a standing committee. A quality circle is a team of employees with similar roles who meet regularly to discuss issues and solve problems. The team in this example is not a quality circle since each member has a different specialty.

45. Joanna is well-respected at work. She consistently follows through on her commitments, is honest with her employees and superiors, and takes responsibility for her actions when she makes mistakes. Because of her behavior, Joanna has positive relationships with others and a sense of purpose and pride. Joanna probably wouldn't enjoy these benefits if it weren't for her A. confidentiality. B. ethical behavior. C. position at work. D. optimistic personality.

45. B Ethical behavior. When people behave ethically, they make good decisions, form positive relationships, and are more likely to achieve success. If you demonstrate ethical behavior, you will be respected and trusted by those around you. You'll impress employers, customers, teachers, and friends who'll know they can count on you. You will also be happier and more confident in your choices and actions. You'll know you're doing the right thing and won't have to worry about the negative consequences of unethical behavior.

46. The employees at Axion Pharmaceuticals have always held weekly team meetings at the same time every Friday afternoon. Originally intended to be productive brainstorming sessions, the meetings have become boring and ineffective over the years. Jackson, a new hire at the company, thinks that the meetings could be more effective if the format was changed. But Jackson doesn't want to "rock the boat" with his new ideas—after all, everyone else seems to just go along with the meetings. So Jackson says nothing, and the boring meetings go on. This example demonstrates the potential negative consequences of A. refusing to accept the norm. B. challenging the status quo. C. accepting risk. D. herd mentality.

46. D Herd mentality. It's human nature to want to be accepted by our peers. As a result, we have a natural tendency to follow the crowd; in most cases, it simply feels safer to belong to a group than to do your own thing. The practice of following the crowd is often referred to as herd mentality. It is a mob mentality that causes people to be influenced by others or adopt certain behaviors. This example demonstrates the potential negative consequences of herd mentality. Because Jackson simply followed the crowd rather than voicing his opinion, the boring meetings at his company will go on unchanged. Jackson followed the status quo, rather than challenging it or refusing to accept it. He decided against taking the risk of speaking out, and so he remained quiet.

47. A good coach is someone who assists a person by A. letting that person figure things out for him/herself. B. helping the person improve his/her performance. C. pointing out the person's mistakes. D. obtaining that person's knowledge and skills.

47. B Helping the person improve his/her performance. A coach is someone who assists others by helping them improve their performance, grow, and achieve more. Coaches provide guidance rather than letting people figure things out for themselves. A good coach focuses on ways the coachee can improve his/her performance instead of focusing on mistakes. A coach is more likely to share his/her knowledge and skills rather than obtaining knowledge and skills from someone else.

48. When giving recognition to someone, it is important to avoid being A. genuine and authentic. B. culturally insensitive. C. personalized to the person. D. timely and appropriate.

48. B Culturally insensitive. When giving recognition, it is important to be mindful of the person's cultural background to avoid offending him/her. For example, it would be inappropriate to reward a Jewish employee for her excellent performance by giving her tickets to see a Christmas play. It is also important to be genuine and authentic, personalized to the person, and timely and appropriate when giving recognition.

49. Being respectful when considering conflicting viewpoints means A. not jumping to conclusions. B. thinking about things subjectively. C. listening to your gut instead of facts. D. avoiding people different from you.

49. A Not jumping to conclusions. Being respectful when considering conflicting viewpoints means avoiding jumping to conclusions or making assumptions before you've heard the entire viewpoint. It also means considering things objectively, not subjectively. To show respect when considering conflicting viewpoints, you should listen to the facts, not to your gut. Avoiding people that are different from you is not respectful.

5. Aiden is doing research for a school project. While searching the Internet, he finds an article that he thinks may be helpful for his project. Which of the following would indicate that the author of the article is most likely a credible source: A. The author has included his/her personal Twitter handle B. There is no background information provided about the author C. The author lists his/her professional background and qualifications D. The author is currently a student in college

5. C The author lists his/her professional background and qualifications. Credible authors generally provide background information about themselves such as where they attended school or received training. If there is no background information provided by an author, it is best to do further research on the individual to determine if s/he is a credible source of information. Including a personal Twitter handle does not necessarily imply credibility. Articles and reports by college students may be useful in certain situations but usually should not be used as primary sources of information because their credibility cannot be guaranteed.

50. Which of the following behaviors demonstrates positive (rather than negative) office politics: A. Chatting with the "office gossip" to get the scoop on the company's upcoming layoffs—and then telling your friends what you heard B. Building relationships with a variety of people at work to further your professional network C. Spreading a rumor about the company CEO that you heard from a coworker, even though you're not sure if it's entirely true D. Choosing employees to work on an important project with you based on whether they brought you gifts for your birthday

50. B Building relationships with a variety of people at work to further your professional network. Office politics are unavoidable. Everyone brings their own unique interests, desires, and goals into the workplace—and oftentimes, those interests, desires, and goals affect our behavior. However, there are ways to navigate office politics positively and without harming others. One example of this is building positive relationships with a variety of people at work to further your professional network. There is no harm in meeting a variety of different people, and it helps you build your professional brand. Chatting with the "office gossip," spreading rumors, and playing favorites are all examples of negative office politics at work.

51. One of the best ways to adapt to a new company's culture is by A. continuing to adhere to the policies and procedures at your previous workplace. B. asking questions about new policies and procedures you aren't familiar with. C. pretending that you know all the new workplace rules and norms. D. questioning the new policies and procedures if you don't agree with them.

51. B Asking questions about new policies and procedures you aren't familiar with. Your supervisor at a new company should provide you with effective training on any policies and procedures that you need to know about for your job. However, it's up to you to ask questions if you don't understand something. It's much better to ask for clarification than to accidentally violate a policy or follow the wrong procedure because you were afraid to get help. It's a bad idea to continue to adhere to the policies and procedures of your previous workplace, since it's unlikely that they will be the same at your new workplace. It's also a bad idea to pretend that you know all the new workplace rules and norms or to question the new policies and procedures while you are still a new hire. Instead, you should carefully learn the workplace rules at your new company and follow them to the best of your ability.

52. Ariana wants to promote her handcrafted jewelry in several different countries. Promoting her products in multiple countries is most likely to result in A. fewer cultural barriers. B. reduced financial risk. C. exposure to new markets. D. fewer compliance challenges.

52. C Exposure to new markets. When a business expands internationally, it often gains exposure to new markets for its products. When international customers discover and enjoy that new business's products, sales often increase. A business operating in several different countries will have more cultural barriers to deal with because customer preferences, traditions, and trends vary from country to country. When a business operates in many countries, it faces more compliance challenges since it must deal with a greater number and types of regulations imposed by different countries (e.g., ingredients and packaging used for products). Business expansion into international markets exposes a business to more financial risk since different currencies, tariffs, and shipping fees often reduce profits.

53. Which of the following is considered a source of taxable income: A. A personal loan from a friend B. Rent payments received from tenants C. Group medical insurance premiums D. Life insurance payout due to a loved one's death

53. B Rent payments received from tenants. Rent payments received from tenants are considered a source of taxable income. A personal loan from a friend is not considered a source of income except in cases where the friend forgives your loan (i.e., doesn't require you to pay it back). Group medical insurance premiums are monies paid for the cost of health insurance and are not considered a source of income. Life insurance payouts are not considered a source of taxable income.

54. What is the main motivation for a business to offer credit accounts to its customers? A. To collect finance charges B. To delay the receipt of income C. To avoid paying income taxes D. To encourage more business

54. D To encourage more business. The main reason that businesses offer credit accounts to their customers is to encourage more business and to remain competitive with other businesses that also offer credit. When businesses offer credit accounts, customers benefit from extended payment periods. Businesses do not benefit from delayed income. Providing credit accounts does not help a business avoid taxes. When customers are late in making a payment on their credit account, they typically have to pay finance charges to help compensate the creditor for lost income and to encourage timely payments. Since late payments negatively impact a business's cash flow, collecting finance charges is not a primary reason to offer customer credit accounts.

55. Shiori has just started her first full-time job as a customer service representative and is earning $2,500 each month. She is working on a list of financial goals. Which of the following is an example of a realistic long-term financial goal for Shiori: A. Earmark $50 each week to use for utility expenses B. Save $200 each month for a $1,000 down payment on a used car C. Save $150 every month to help buy a house in five years D. Save $3,000 every month for a retirement fund

55. C Save $150 every month to help buy a house in five years. Saving $150 each month to put toward a down payment on a house in five years is an example of a realistic long-term goal. Realistic goals are achievable with the amount of income an individual has and/or earns. Long-term goals are goals that take five or more years to accomplish. Saving money for a $1,000 down payment on a used car is a short-term goal since it can be achieved in less than a year. Earmarking money for utility expenses is an example of budgeting. Since Shiori only earns $2,500 each month, saving $3,000 every month for a retirement fund is unrealistic.

56. What does the gross pay on a pay stub reflect? A. Retirement plan contributions made by the employee B. Income left over after all deductions have been made C. Overtime pay provided by the employer D. All monetary income provided by the employer

56. D All monetary income provided by the employer. Gross pay reflects the full amount of money earned by an employee before any deductions are made. The income left over after all deductions have been made is considered net pay. Overtime pay is included along with regular wages to calculate gross pay. Pre-tax retirement plan contributions made by the employee are subtracted from gross pay, reducing net pay as well as taxable income, which in turn reduces the employee's tax burden.

57. Dan is working part-time delivering pizzas. He has a new credit card with 0% interest, a credit limit of $5,000, and no minimum payment required for the first six months. The card also grants 1% cash back for all purchases. How can he wisely handle his account for the first six months? A. Make no payments until the six-month period is over B. Pay the balance in full each month C. Earn more cash back by using all of the available credit D. Make small monthly payments

57. B Pay the balance in full each month. To use a credit card responsibly, an individual should only make purchases that are within his/her budget and that s/he is able to pay in full each month. It is wise to avoid large credit card balances since they can be difficult to pay and eventually incur interest. It's unwise to delay payments on a credit card and run up a large balance. Waiting until the six-month period is over will likely result in high interest charges. Using all available credit is unwise because it can negatively impact a person's credit score and create a large balance that charges interest and is difficult to pay.

58. Calista has very little savings and needs help with all aspects of financial planning, including setting goals, making a plan, and choosing appropriate investment products. She has little financial knowledge and a low tolerance for risk. What type of financial-services provider should she seek? A. Boutique finance firm for wealthy clients B. Certified financial planner C. Stock broker D. Certified public accountant

58. B Certified financial planner. Since Calista needs help developing a plan and choosing investment products, she will benefit from the services of a certified financial planner (CFP). CFPs are experienced professionals who are qualified and committed to maintaining current knowledge of investment products and helping clients set financial goals. Stock brokers sell stock based on clients' desires and requests and do not routinely assist with planning and goal setting. Certified public accountants primarily help clients manage their current finances and do not have specialized knowledge of investment products. Boutique financial firms typically only offer their services to clients who possess a great deal of financial wealth.

59. Maya has $3,000 that she wants to invest for the long term. She is willing to assume some financial risk in exchange for a high return. What type of investment should she select? A. Rare antique gold coins B. Stocks C. Money market account D. Government bonds

59. B Stocks. An individual willing to assume financial risk and invest for the long term should consider stocks as an investment tool. Stocks carry risk but can greatly increase in value over the long term. Money market accounts carry little risk but usually don't earn significant interest. Government bonds are debt securities issued by a government. Government bonds typically carry little risk and offer a low rate of return. Rare antique gold coins are not recommended as a profitable investment tool since it's difficult to predict what coin collectors will be willing to pay for them in the future.

6. Which of the following is an effective strategy for identifying important information while reading: A. Skipping the preface and introduction to spend more time on the main content B. Paying special attention to headings, titles, and graphics C. Skimming the text instead of reading it all word for word D. Reading only the first and last paragraphs of the text

6. B Paying special attention to headings, titles, and graphics. One of the best strategies for extracting important information from a text is to pay attention to headings, titles, and graphics. These elements often point the reader to the main issues presented in the text and can help the reader better comprehend the information s/he is reading. It would be unwise to skip or simply skim any portion of a text. Important information could be presented in any section, including the preface or introduction.

60. When you are just beginning your career, what should be the main emphasis of your retirement planning efforts? A. Taking monthly payouts from acquired assets B. Adjusting retirement plan to maintain acquired wealth C. Setting aside money for retirement D. Matching your employer's contributions

60. C Setting aside money for retirement. The main emphasis of retirement planning early in one's career is saving money for the purpose of retirement. Near the end of one's career, adjustments help protect acquired wealth that is needed for retirement. Monthly payouts should not occur until one has reached retirement. Employees do not match employer's contributions. Some employers, however, match a percent of employee contributions to help employees meet retirement goals.

69. Your boss asks you to prepare a report about current market trends. Which of the following is the most efficient way to obtain the needed information: A. A customer survey B. Library research C. Customer interviews D. Online research

69. D Online research. One of the most convenient and efficient ways of obtaining information is an online search. Search engines such as Google and Bing make it easy to locate information using keywords and phrases. Using online searches gives you access to the widest selection of current information in many different formats. Library research can help provide reliable information, but it takes more time to conduct. Interviewing customers and conducting surveys are examples of primary research that can be costly and time-consuming to conduct.

61. How can property insurance benefit an individual or organization? A. It ensures that the property will not go down in value. B. It accrues interest to increase the property owner's wealth. C. It eliminates the risk of lawsuits and financial loss. D. It reimburses the property owner for damage or theft.

61. D It reimburses the property owner for damage or theft. Property insurance provides financial reimbursement to the owner in the event of damage or theft. If there's a claim, the insurance policy will reimburse the policyholder for the actual value of the damage that occurred or the replacement cost to repair the damage. Property insurance offers liability coverage for accidents that occur on the property and makes payments to the affected parties. However, it does not eliminate the risk of lawsuits and financial loss. Property insurance does not protect property from depreciating, nor does it accrue interest.

62. Which of the following most accurately describes the overall purpose of accounting: A. To keep track of income B. To estimate and pay taxes C. To maintain financial information D. To keep track of expenses

62. C To maintain financial information. The primary purpose of accounting is to accurately record and maintain all financial transactions and information. When accounting is performed correctly, it helps individuals and businesses keep track of their financial situation and make informed financial decisions. Estimating and paying taxes, keeping track of income, and tracking expenses are just a few of the financial activities achieved through accurate accounting.

63. How does a cash flow statement benefit a business? A. It estimates the business's anticipated cash flow. B. It identifies unpaid customer credit accounts. C. It predicts future business growth. D. It helps the business generate interest income.

63. A It estimates the business's anticipated cash flow. The cash flow statement is a business's best guess, or estimate, as to when, where, and how much actual cash will flow into and out of the business. Knowing when money will flow in and out is important because it warns businesses when they will be low on cash. Future business growth is typically predicted by analyzing the company's overall financial situation, assets, and business opportunities. A cash flow statement only includes actual monies received and does not identify unpaid customer credit accounts. Interest income is generated by financial investments.

64. The Apex Company is a large, growing company with finance, accounting, operations, and sales departments. The company needs additional outside funding to pay for new buildings and equipment. What business department is responsible for ensuring the monies are available when needed? A. Accounting B. Finance C. Operations D. Sales

64. B Finance. When a business needs outside funding, it typically relies on its finance department to obtain the monies. A company's finance department is responsible for money management decisions, including obtaining the financing and capital needed to run a business. Accounting ensures that a company has accurate information about its current financial situation. A sales department is responsible for meeting company sales' goals. Operations is responsible for the effective use of a company's available resources to conduct business activities.

65. What is the primary reason why a budget is an essential financial tool for a company? A. Because money is a limited resource, it must be carefully managed. B. Because money is an unlimited resource, it must be carefully managed. C. A budget helps a company predict company growth. D. A budget helps a company identify business opportunities.

65. A Because money is a limited resource, it must be carefully managed. A budget is a powerful tool that helps a business manage its limited financial resources to accomplish company goals. Virtually no resource is unlimited. A company typically uses past sales, sales forecasts, and possible business opportunities to predict growth. Companies identify opportunities by studying customer needs, competitors, and industry trends.

66. Asha's coworker Melissa often makes offensive jokes about her religion. This is an example of __________ in the workplace. A. ethical behavior B. harassment C. discrimination D. high morale

66. B Harassment. Harassment is defined as any kind of unwelcomed behavior that is carried out for the purpose of irritating or intimidating another person. Making jokes about someone's religion is an example of workplace harassment. It is not an example of ethical behavior, discrimination, or high morale.

67. Certain gemstones such as emeralds are more plentiful in some countries than others. How does widespread international marketing impact this situation? A. It discourages trade between nations. B. It encourages trade between nations. C. It limits customers' access to emeralds. D. It makes emeralds extremely valuable.

67. B It encourages trade between nations. When a product or resource is more plentiful in one country, international marketing encourages trade so customers from other countries can acquire the goods they desire. International marketing increases customers' access to products and resources from other regions. A product's value is largely determined by consumers' wants and desires and is impacted by demand and scarcity. If demand is high and the product is scarce, the value increases. Widespread marketing will make emeralds available to more markets which can help increase demand, but it may or may not influence consumers' personal preferences. Making emeralds widely available will also increase production and actually reduce the scarcity of emeralds. There's no way to determine if widespread marketing will make emeralds extremely valuable to consumers.

68. In the United States, the Hispanic population is an example of a __________ that marketers often target. A. social influence B. subculture C. membership group D. reference group

68. B Subculture. A subculture is a culture within a culture and is often based on ethnicity, religion, or geographic location. So, while you might be an American, you might also be an Asian American, a Jewish American, a New Englander, a "farm kid," etc. The growing Hispanic population in the United States is an example of a subculture that marketers often target. The Hispanic population is not an example of a social influence, membership group, or a reference group. A membership group is a social group such as a school organization, church group, neighborhood association, or sports team. A reference group is a group that someone aspires to be a part of, or a group that someone wants to distance him/herself from.

7. Matthew's boss recently showed him how to use his company's copier. While Matthew was listening to her instructions, however, he was distracted by a TV in the next room. As a result, Matthew jammed the machine when he tried to use it to make copies. Which of the following listening strategies did Matthew fail to implement in this example: A. Giving undivided attention to the person speaking B. Asking for clarification if something is unclear C. Repeating the instructions in your own words D. Highlighting important information in the instructions

7. A Giving undivided attention to the person speaking. When receiving oral instructions, it's important to give the speaker your undivided attention so that you don't miss any of the directions. In this example, Matthew failed to give his boss his undivided attention because he was distracted by the TV. Asking for clarification if something is unclear and repeating the instructions in your own words are also good listening strategies; however, it's not clear if Matthew did either of these things or not. Highlighting important information is a good strategy for written instructions and text, not for oral instructions.

70. You've been asked to attend a meeting with an organization's board of directors to convince them to buy your company's customer relationship management software. Which of the following best describes the type of information you should provide and how you should prepare it: A. Create a custom slideshow presentation that explains how the software program will benefit the client. B. Write a lengthy report that includes all of the technical details regarding the software you are recommending. C. Create a brief marketing message to generate interest in the software. D. Create a storyboard to share an exciting visual message about your software.

70. A Create a custom slideshow presentation that explains how the software program will benefit the client. A slideshow presentation is best used to share information when meeting with a group of people. A lengthy report containing technical details is not as effective or persuasive as explaining how the software will benefit the company. Storyboards are best used to organize visual content for slideshow presentations and videos or to present highly artistic or conceptual products such as television advertisements or films. Brief marketing messages are used to generate customer interest in a product and are not appropriate for a formal business meeting.

71. Which of the following types of nonpublic personal information (NPI) can a company be held legally responsible for revealing: A. A customer's published phone number B. A record of bankruptcy C. A customer's payment history D. A customer's ownership of a home

71. C A customer's payment history. Companies can be held liable for revealing customers' nonpublic personal information (NPI) because it invades their privacy and can expose them to financial harm. NPI is any personally identifiable information that an organization collects in connection with providing a financial product or service, unless that information is publicly available. Examples of NPI include information about a customer's business with an organization, account numbers, payment history, loan or deposit balances, and credit or debit purchases. Bankruptcies, published phone numbers, and home ownership are all examples of published information that is easily accessed through regional, state/province, national, and court databases and records.

72. You need to send a new email message to all the people contained within a large email group without exposing each individual's email address. What email function should you use? A. Carbon copy B. Reply all C. Forward D. Blind carbon copy

72. D Blind carbon copy. The blind carbon copy function (Bcc) is used to keep email addresses private and to prevent recipients from seeing who else is receiving the email. The blind carbon copy function is frequently used to send messages to a large group of email recipients while maintaining the privacy of each individual's email address. The carbon copy feature (cc) can also be used when sending email to several people, but every recipient can see everyone else's email address using this technique. The forward function is used to forward a message to selected recipients. The reply all function is used to send a reply message to all of the original recipients of an email message.

73. Your boss asks you to create a spreadsheet to generate monthly sales reports. What spreadsheet function or technique should you use to reduce the amount of data you will need to enter each month? A. Use the Auto Sum function B. Create formulas using monthly sales amounts C. Create formulas using cell locations D. Use the Sort and Filter function

73. C Create formulas using cell locations. Spreadsheet applications are more fully automated and require less input from users when formulas are created using cell locations. When a spreadsheet's formulas contain cell locations, the user only needs to enter new sales figures to automatically calculate the rest of the information. If a user creates formulas using monthly sales amounts, the user must update the data contained in every formula for every monthly sales report. The Auto Sum function only automates the addition of figures contained in a row or a column but is not able to multiply, divide, or perform complex math calculations. The Sort and Filter function enables computer users to change the order of data in a spreadsheet.

75. Which of the following tools can be used to reduce information redundancy, control access to information, and share and back up data: A. Social networking websites B. Cloud-based storage applications C. Database management systems D. Financial accounting software

75. C Database management systems. Database management systems allow users to create, retrieve, manage, and update databases. Some of the primary benefits of database management systems are the ability to reduce data redundancy, control access to information, and share and back up important data. Cloud-based storage applications are used to store information in a remote server accessed from the Internet. Social networking websites such as Facebook and Twitter are Internet-based communication tools that allow people to interact online. Financial accounting software assists users with various financial accounting activities.

76. Which of the following accurately describes the purpose and scope of data mining: A. Calculating the mean, median, and mode of a dataset B. Searching data sets to locate a specific data point C. Identifying patterns to predict outcomes D. Eliminating unnecessary data within a data set

76. C Identifying patterns to predict outcomes. Data mining is the practice of identifying patterns, anomalies, and correlations within a set of data to predict future outcomes. Data mining can be used to help make sense of large sets of data. The purpose of data mining is not necessarily searching data sets to locate a specific data point; calculating the mean, median, and mode of the set; or eliminating unnecessary data from a set—although these activities may be included in a data mining effort.

77. Tara closes a large business deal for the company she works for. What should she do with the signed contract? A. Keep it with her B. Return it to the client C. Store it in a secure place D. Show it to her coworkers and friends

77. C Store it in a secure place. Business contracts are important documents since they detail the conditions and terms of a legally binding contract. Employees should place contracts in a secure location so they can be accessed when needed and to prevent unauthorized individuals from gaining access to them. The client should be provided with his/her own copy. If Tara keeps the contract in her possession, she creates the risk of loss and makes the information unavailable to other employees or managers who may require the information. It is unethical and illegal to show a contract to coworkers or friends who do not have a valid reason to view it.

79. Anna is conducting an environmental scan to help her company better satisfy its customers' needs. As part of her research, Anna collects data on customers' age, gender, employment status, race, and other personal characteristics. This data falls under which category of information gathered through environmental scanning? A. Competition B. Society and culture C. The economy D. Demographics

79. D Demographics. Demographics are the physical and social characteristics of the population. Examples of demographic data include age, gender, income, employment status, family status, education, geographic location, religious beliefs, and race or ethnic origin. Demographics can help companies better understand their customers' unique needs and wants. Society and culture includes information about what customers value. Our society is transforming at a rapid rate—some say faster than ever before. Successful businesses stay on top of changes in society and culture so that they can remain sensitive to customer needs and wants. The economy also greatly affects businesses and the decisions they must make to satisfy customers and remain profitable. Economic factors that businesses should pay attention to during an environmental scan include stage of the business cycle, inflation, interest rates, unemployment rates, investor confidence, tax rates, currency exchange rates, and foreign economic conditions. Finally, businesses should always pay attention to what their competition is doing. By watching its competition, a business can better decide on strategies to be successful.

8. Lily, a sales representative at a kitchen store, recently received a question from a customer about a particular product. The customer wanted to know what type of material a certain cooking pot was made of. Lily responded by saying: "This cooking pot is an excellent choice for high-temperature cooking. It can be placed in an oven up to 500 degrees." What was wrong with Lily's response? A. She exaggerated or embellished the truth about the product. B. She didn't address the question that was asked. C. She interrupted the customer with her response. D. She made the customer feel uncomfortable.

8. B She didn't address the question that was asked. Lily's response to the customer's question did not actually address the customer's inquiry. Instead of informing the customer about the material of the cooking pot, she described a particular benefit of the pot. It's important to answer customers' questions directly and concisely. Lily did not necessarily exaggerate or embellish the truth about the product in this example, nor did she interrupt the customer. There is not enough information given to determine if Lily made the customer feel uncomfortable.

80. Brenna works at a meat processing plant. After accidentally touching meat products without gloves, Brenna contracted a bacterial infection. This example demonstrates which type of occupational hazard? A. Physical B. Chemical C. Biological D. Mechanical

80. C Biological. Biological hazards are dangers associated with working with animals, people, or hazardous plants. People who work in hospitals, food processing, daycares, and schools are especially at risk for exposure to disease or other injury related to biological hazards. Chemical hazards are present whenever a worker is exposed to chemicals in the workplace, such as in laboratory or manufacturing settings. Physical hazards are any factors within an environment that can harm the body, such as sunlight, extreme temperatures, and loud noise. Mechanical hazards are hazards associated with operating machinery or other potentially dangerous tools

81. Workers at KJC Technology generally spend at least nine hours at their desks every day. Last year, five employees in the same office were diagnosed with high blood pressure. An additional two employees suffered minor heart attacks. What steps could the company take to reduce the risk of more employees suffering from similar conditions? A. Educate workers on the dangers of UV exposure B. Provide candy bars and other quick snacks C. Prohibit employees from bringing their own lunches D. Offer standing desks and hourly work breaks

81. D Offer standing desks and hourly work breaks. Recent studies have shown that "sitting is the new smoking." Sitting for long periods of time can contribute to several health conditions, including high blood pressure, high blood sugar, obesity, and heart disease. Offices can help their employees stay healthy by offering standing desks and frequent breaks to walk around. Providing healthy snacks may be beneficial, but candy bars would not contribute to employees' health. Prohibiting employees from bringing their own lunches would not necessarily reduce the risk of employee illness. Educating employees on the dangers of UV exposure is a good way to prevent sun damage, but not diseases such as the ones described in this example

82. Liz's Ice Cream Parlor is especially popular for its "Chocolate Mystery" flavor. When a former employee of the shop quit her job and started working at a competing ice cream parlor, she took the recipe for "Chocolate Mystery" with her—and stole a big chunk of Liz's business. This example demonstrates the importance of A. keeping employees in the dark. B. protecting company "intangibles." C. hiring people you don't trust. D. taking steps to secure financial assets.

82. B Protecting company "intangibles." Companies should take steps to protect their intangible assets, such as their trade secrets and other intellectual property. If Liz's Ice Cream Parlor knew that its "Chocolate Mystery" flavor was a major contributor to profits, it should have registered it as a trade secret or taken other actions to protect it from being stolen or misused. Another way to protect company intangibles is by making employees sign noncompete forms. Noncompete agreements essentially prohibit employees from taking the company's sensitive information to a competitor. This example does not demonstrate the importance of keeping employees in the dark or taking steps to secure financial assets. It's important to hire people that you trust—not people that you distrust.

83. If your project team members are located across the country, which of the following project planning tools would be most beneficial for communication and file sharing: A. To-do lists and assignment sheets B. Online collaboration platforms C. Focus groups D. Flow charts

83. B Online collaboration platforms. Many web-based collaboration tools make it easy to plan your project digitally with others. You can upload files, host discussions, and manage tasks online. Even if your project stakeholders aren't in the same place, they'll all be able to participate in the planning process. Todo lists, assignment sheets, focus groups, and flow charts are all important project planning tools, but they are not specifically beneficial for communication and file sharing when project team members are located across the country.

85. The first thing a company should do before selecting a vendor is A. hold initial vendor discussions to negotiate a contract. B. identify potential sources for vendor recommendations. C. eliminate vendors that don't meet the organization's standards. D. determine and document the organization's need(s).

85. D Determine and document the organization's need(s). The first thing a company should do when selecting a vendor is determine what it needs a vendor for in the first place. Once the company has documented its need, it can then move on to identifying potential vendors, holding discussions with potential vendors, and eliminating vendors that don't meet the organization's standards. It would be unwise to take any of these steps without first determining why the company needs the vendor.

86. Allison is a pastry chef. Each morning, she combines flour, sugar, eggs, and various other ingredients to produce delicious muffins, cookies, and cakes. Taking ingredients and turning them into finished products like Allison does is called A. intermittent production. B. production planning. C. the conversion process. D. batch production.

86. C The conversion process. Inputs turn into products during the conversion process. Conversion processes could include manufacturing, cooking, teaching, constructing, printing, or any activity that takes resources and turns them into something usable. Production planning determines how products will be produced and in what amounts. An intermittent production process is one in which production periodically stops and restarts. It can be used in the production of standard products such as tools, or custom products such as individual insurance policies. Batch production means producing items in specific amounts, or batches. It is often used to meet specific or short-term market needs. For example, Starbucks usually produces batches of pumpkin spice lattes in the fall and batches of peppermint mochas in the winter.

87. A furniture manufacturing company has been having problems making a certain type of desk chair. Employees on the assembly line have reported higher-than-average numbers of defective chairs. Instead of spending thousands of dollars tweaking its machinery or training its employees more effectively, the company decides to invest its time and money on designing a better chair. This is an example of what quality-control method? A. Lean production B. Concurrent engineering C. Process performance management D. Taguchi method

87. D Taguchi method. Also known as robust design, the Taguchi method is an approach to quality management that focuses on product research, design, and development, rather than manufacturing. Though following the Taguchi method may require more time, effort, and money upfront, it's often much less expensive in the long run than it is to "clean up" issues relating to poor quality. Concurrent (simultaneous) engineering refers to performing the various stages of product design and development at the same time, instead of one after another. This method enhances product quality by allowing potential problems to be caught and adjusted earlier in the development process. Process performance management is the supervision of business and/or manufacturing processes to ensure their quality and efficiency. Lean production, often referred to simply as "lean," originated with the car manufacturer Toyota. The foundation of "lean" is maximizing customer value while minimizing waste. The method demonstrated in this example is the Taguchi method, not concurrent engineering, process performance management, or lean production.

88. Which of the following is an example of a variable expense: A. Wages/Salaries B. Utility payments C. Property taxes D. Employee bonuses

88. D Employee bonuses. Operating costs that fluctuate with changes in production are called variable expenses. When a company produces more of a product, variable expenses go up. Examples of variable expenses include advertising and promotion; travel expenses; sales commissions; employee bonuses; permits and fees; and the cost of providing free shipping, delivery, or installation. Utility payments, property taxes, and wages/salaries are examples of fixed expenses—expenses that must be paid no matter what.

89. Which of the following behaviors is most likely compliant with policies for using company property: A. Taking a work device home to enable your family to use it B. Keeping a company cell phone after quitting your job C. Sending confidential information to someone outside the company D. Avoiding use of a company computer for personal email

89. D Avoiding use of a company computer for personal email. Most companies have policies and procedures in place for using company property, including computers, smartphones, and other devices. Company property also includes intellectual property, and many businesses have policies regarding its use—such as prohibiting employees from sending confidential information to people unaffiliated with the company. Avoiding use of a company computer for personal reasons is an example of complying with a companyproperty policy. Most companies prefer (or require) that employees do not use business property for personal reasons. These policies generally prohibit employees from allowing people other than the employee to use the company device. Many companies also have policies that require employees to return company devices upon resignation or termination

9. Joel, a car salesman, purposely adjusts his communication style to mirror the habits of his customers. He finds that customers are more comfortable talking to someone that communicates in a familiar way. In other words, Joel is A. building rapport. B. being dishonest. C. tricking his customers. D. subduing his own personality.

9. A Building rapport. One of the most effective ways to build rapport is by mirroring—matching your communication style to that of your audience. Customers generally feel more comfortable when salespeople communicate in ways that are familiar to them. Mirroring is not dishonest or a way to trick customers—it is simply a communication strategy. Joel is not necessarily subduing his own personality in this example; rather, he is matching his communication style to that of his customers.

90. Think about the last time you ate an apple. That apple passed through several hands before it reached your lunch bag. First, the apple was grown by a farmer, who sold it to a wholesaler or distributor, who then sold it to a retail store. Finally, the apple was bought by you or your parents—the final consumers. The apple's journey from farm to table is an example of A. deflation. B. supply chain. C. manufacturing. D. marketing.

90. B Supply chain. A supply chain is a complete network of producers, distributors, and retailers that work together to get a product into the hands of consumers. In this example, the apple journeyed from farmer, to distributor, to retailer, to consumer. This is an example of a supply chain in action—not deflation, manufacturing, or marketing. Deflation is a steady decline in the general price levels of consumer goods and services over a period of time. Manufacturing is the process of changing raw materials so that they will be useful to consumers. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers.

91. As a New Year's resolution, Kelly set a goal to eat more healthy foods. While well-intentioned, Kelly may have a hard time meeting her goal because it is A. not specific or measurable. B. time-bound and results-oriented. C. not attainable or realistic. D. too specific to be met.

91. A Not specific or measurable. SMART goals are those that help you identify exactly what it is you want to achieve—and then know for sure when you've achieved it. SMART goals are specific, measurable, attainable, results-oriented, and time-bound. Kelly is unlikely to meet her goal of eating more healthy foods because the goal is not specific or measurable (or time-bound or results-oriented). A better goal would be to eat at least three servings of fruits and vegetables per day. This goal would allow Kelly to monitor her progress and determine whether she is meeting the goal or not.

92. Sony's PlayStation 3 gaming system, which was released in 2006, didn't compete well initially against other gaming consoles on the market. After nearly three years of lackluster sales and diminished profits, Sony launched a new advertising campaign for the unpopular product— marketing the PlayStation 3 as an all-in-one entertainment source for playing video games, downloading movies, and watching Blu-ray discs. This is an example of __________ innovation. A. product B. paradigm C. positioning D. process

92. C Positioning. Positioning innovation occurs when the purpose of a product is changed. The product itself remains the same, but it is marketed differently. In other words, the company focuses on changing the customer's perception of its product. Paradigm innovation involves a significant change in the way a product is viewed by users and society at large. Paradigms are the values, assumptions, and beliefs that make up the way people see things. A well-known example of paradigm innovation involves personal computers. Once upon a time, computers were only in labs. But that all changed with the creation of the personal computer. Computers quickly became something everyone wanted and needed. Product innovation occurs when a business either creates or improves a product. Finally, process innovation focuses on how something is done. Innovations don't just happen to products themselves—they can also happen to the processes or methods used to create products. Better processes typically mean more profit. If a company can make a product more quickly, it can produce more in the same amount of time— which means it can sell more products and make more money

94. Tanya, a quality manager, spends her workdays ensuring that the production lines at her manufacturing plant are running smoothly and efficiently. Positions such as Tanya's fall under which subcategory of business career? A. Business information management B. Human resource management C. Operations management D. General management

94. C Operations management. Employees working in operations management focus on planning, organizing, coordinating, and controlling the resources needed to produce/provide a business's goods and/or services. Examples of activities in operations management include quality control, scheduling, procurement, and warehousing. Human resource (HR) management careers focus on the staffing activities that involve planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety of employees. Business information management is an umbrella term covering those careers that provide a bridge between business processes/initiatives and IT (information technology). Employees in this area help align business and IT goals. Careers in general management focus on planning, organizing, directing, and evaluating part or all of a business organization through the allocation and use of financial, human, and material resources. These are the employees who have supervisory responsibilities and make decisions, either big or small.

95. Which of the following would be appropriate to include in a follow-up letter after a job interview: A. An assertion that you'll only accept the job if you are offered a specific salary B. An entirely new qualification or skill that you didn't mention during the interview C. A few sentences expressing your enthusiasm for the position you interviewed for D. A copy of the résumé you provided for the company during the interview

95. C A few sentences expressing your enthusiasm for the position you interviewed for. Sending a follow-up letter is an excellent way to express your gratitude for the interviewer's time—and to set yourself apart from the competition. Generally, a follow-up letter should reiterate your enthusiasm for the position as well as remind the interviewer of your unique skills and qualifications. Any relevant skills, experiences, or qualifications should be addressed during the interview and should not be added to a follow-up letter unless they were discussed in conversation or listed on your résumé. It would be inappropriate and unwise to mention salary in a follow-up letter, and you are unlikely to receive the job if you do mention compensation. It is unnecessary to include a copy of your résumé in a follow-up letter, since the interviewer likely already has several copies.

96. Joel is a newly certified HVAC (heating, ventilation, and air-conditioning) technician. By joining a local professional association, he was able to meet a recruiter looking for employees with his skills. This example demonstrates how networking A. guarantees that professionals will find a suitable job. B. is generally a waste of time that could be better spent. C. should only be used when you are actively seeking a job. D. can be used to identify job opportunities.

96. D Can be used to identify job opportunities. Networking techniques such as joining a professional organization can help individuals identify job opportunities. In this example, Joel found a job through a contact he made in his organization. While networking doesn't guarantee that a suitable job will be found, it can certainly help. When done correctly, networking is not a waste of time. Networking techniques can be used in any stage of a professional's life to build relationships, learn new skills, and stay up to date on industry trends.

97. Brandon, an accountant, wants to expand his professional network and stay up to date in his industry. However, he doesn't have time to commit to attending events on a weekly basis. Which of the following resources would best help Brandon achieve these goals: A. Classes/Seminars B. Trade journals/periodicals C. A professional association D. A social group outside of work

97. C A professional association. Joining a professional or trade association would help Brandon meet other professionals in his industry and stay up to date on industry trends. Unlike classes or seminars, professional organizations generally do not require weekly or even monthly participation—making them the perfect fit for Brandon's busy schedule. Trade journals and publications may help Brandon stay up to date on industry trends, but they would not necessarily help him meet other people in the industry. A social group outside of work would certainly help Brandon form friendships with a diverse group of people, but not necessarily with professionals in his field.

99. Which of the following statements about organizational goals and employees is true: A. Employees must fully understand organizational goals for the goals to be met. B. Organizational goals should be made without employee input. C. Goals should be set by top management and only told to select employees. D. Employees' performance has no impact on the achievement of organizational goals.

99. A Employees must fully understand organizational goals for the goals to be met. Employees play a large role in accomplishing organizational goals. Without full employee participation and engagement, companies are unlikely to meet their goals. Employees should be included in the goal-setting process so that they can learn how to align their work with the wider organizational strategy. Goals should not be kept "secret" among company leaders—they should be common knowledge among all members of the organization.


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